Deutsche Bank has launched one of the largest Indian real estate investment funds by a foreign investment bank, the latest in a series of new vehicles targeting the countryâs booming property sector.

The fund, which is expected to raise $1bn (€751m), comes after a year in which rival banks, institutional investors and private equity sponsors have rushed to capitalise on the high returns from Indian and other emerging market infrastructure and real estate assets.

Morgan Stanley closed its record $8bn international real estate fund this year, a large proportion of which is dedicated to India. Apollo Management, a US private equity sponsor, is poised to launch India’s biggest real estate fund – likely to attract $2bn – after joining forces with Sun Group, a local investment company.

International investors are flocking to India because they believe its growth prospects outweigh those of more established markets in the US and Europe.

The Indian Government relaxed its criteria on foreign direct investment into property last year.

From shopping malls to apartments, offices to call centres, the country is remodelling itself. Almost $7.5bn of foreign money has been pledged by several groups.